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DEFINITION of 'Federal Poverty Level-FPL'. The set minimum amount of gross income that a family needs for food, clothing, transportation, shelter and other necessities. In the United States, this level is determined by the Department of Health and Human Services. FPL varies according to family size. The number is adjusted for inflation and reported annually in the form of poverty guidelines. Public assistance programs, such as Medicaid in the U.S., define eligibility income limits as some percentage of FPL.
Change in Poverty Rate From The Prior Year. The U.S. poverty rate for the nation as a whole remained constant at 14.8% of the population from 2013 to 2014. The Census Bureau reported a 14.5% poverty rate last year for 2013, but revised the number up to 14.8% based on improved sampling techniques. The poverty rate has been very static over the past 30 years.